How Do I Deal With a 1099-C I Don’t Think I Owe?


Dear Steve,

I got a 1099-C from a bank headquartered in Malaysia for $970, but I never owed anyone that amount, and it is not on any of my credit reports.

The 1099-C says forgiven debt for retail. Again, nothing on any credit reports like that.

I filed my taxes to be on time, and now I need to amend them to get rid of this. How do I do that with the amended return?



Dear Kelleen,

I think you have two issues here.

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The first is that an item that does not appear on your credit report does not mean you don’t owe the debt or didn’t have the debt. A credit report is not a total or comprehensive listing of debts in your name. It only represents the debts that are reported to the credit bureau.

Before you rush to file an amended return, I think you should read How to Deal With a New 1099-C Issued on Old Debt Using Little Known IRS Form 4598.

If you believe the 1099-C issued is, in fact, incorrect, you will have to gather up all the patience you can and then call the IRS. When you call the IRS (1-800-829-1040), have an IRS representative initiate a Form 1099 complaint. The IRS will fill out form 4598, “Form W-2, 1098, or 1099 Not Received, Incorrect or Lost.”

This will start the process to require the creditor that submitted the complaint to correct the 1099-C.

The bank out of Malaysia has a United States operation and may have purchased an old debt that was originally from a different creditor. But before we begin to make assumptions, let’s get some facts by following the process above.

Please post updates to me in the comments section below so I can keep helping with this.

Damon Day - Pro Debt Coach

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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